Sensex, Nifty decline after 2-day rally over global recession worries

Indian equity indices closed in the red on Thursday after weak US consumer data rekindled global recession worries. Selling was seen across all sectors except PSU bank and oil & gas stocks.

The BSE Sensex index ended 187 points or 0.31% lower at 60,858, while Nifty50 fell 57 points or 0.32% to settle at 17,108.

Among the Sensex stocks, Asian Paints and Tata Motors were the top laggards, falling about 2-3%. IndusInd Bank, Kotak Bank, HUL, Titan, UltraTech Cement and Bajaj Finserv also closed with losses. However, Power Grid, Tata Steel, Axis Bank, Tech Mahindra, L&T and HDFC Bank closed with gains.

Sector wise, the Nifty FMCG fell 0.86% and Nifty Consumer Durables declined 0.63%. Banks, auto, financials, media, metal, pharma and realty stocks also closed lower. Whereas, in the broader market, Smallcap50 dropped 0.52% and Nifty Midcap50 ended flat.

The market capitalisation of all listed companies on the BSE declined by Rs 1.92 lakh crore to Rs 281.71 lakh crore.

Experts view
“Domestic indices snapped their previous gains amid negative sentiments from their global counterparts. Weak US consumer data and hawkish comments from the Fed's policymakers on Wednesday hammered investor risk appetite. Lingering fears of recession dragged global bourses down, leaving the market volatile,” said Vinod Nair, Head of Research at Geojit Financial Services.

Markets remained choppy, inability to provide follow-up action either side is typical of price consolidation. “A decisive breakthrough and sustenance above 18,300 is essential to regain required momentum on upside. Recent recovery ensures important support near 17,800. BankNifty remained choppy, sustenance above 42,000 is essential to revisit levels of 43,000 on higher side,” said Amit Trivedi, Technical Analyst - Institutional Equities, Yes Securities.

Global Markets
Global shares were mostly lower on Thursday as investors grew cautious after Wall Street's biggest pullback of the year.

Japan's benchmark Nikkei 225 slipped 1.4% to 26,405. South Korea's Kospi added 0.5% to 2,380. Hong Kong's Hang Seng shed 0.1% to 21,651, while the Shanghai Composite rose 0.5% to 3,240.

France's CAC 40 lost 0.4% in early trading to 7,052, while Germany's DAX edged down 0.5% to 15,106. Britain's FTSE 100 fell nearly 0.6% to 7,787.

Currency Watch
The rupee eased on Thursday, tracking its Asian emerging market counterparts, which declined after a batch of weak US data stoked worries about a slowdown in the world's top economy.

The partially convertible rupee finished at 81.36 per dollar, compared to its Wednesday close of 81.24.

(With inputs from agencies)